​​​​Further to the Capital Market Authority’s announcement on its website on 12/09/1437H corresponding to 18/06/2016G regarding the issuance of a decision by The Committee for the Resolution of Securities Disputes (CRSD) (Initial) to convict a number of the board members of Mohammad Al Mojil Group Company during its IPO stage and some of the company’s senior executives and the company's external auditor for violating paragraph (A) of Article (49) of the Capital Market Law and Article (7) of the Market Conduct Regulations by conducting practices that created a misleading and incorrect impression regarding the value of Mohammad Al Mojil Group Company's security during the IPO stage of the company's shares.
 
CMA would like to clarify to the public that on 11/05/1438H corresponding to 08/02/2017G a decision was issued by the Appeal Committee for the Resolution of Securities Disputes (Final) endorsing the decision of the Committee for the Resolution of Securities Disputes (CRSD) mentioned above.
 
The decision of the Appeal Committee included imposing a number of sanctions on the defendants in accordance with the following detail:
 
First: The Defendant/ Mohammed Bin Hamad Bin Abdulkarim Almojil

1. Impose a fine on the convicted of 300,000 Three Hundred Thousand Riyals.
2. Imprison the convicted for a period of five years.
3. Obliging him to pay (1,620,000,000) one billion, six hundred and twenty million riyals to the CMA’s account for the illegal profits achieved as a result of these violations.
4. He shall refrain from working in listed companies for ten years.

Second: The Defendant/ Adel Bin Mohammed Bin Hamad Almojil

1. Impose a fine on the convicted of 300,000 Three Hundred Thousand Riyals.
2. Imprison the convicted for a period of five years.
3. He shall refrain from working in listed companies for ten years.

Third: The Defendant/ Fahad Bin Ali Bin Saad Alraqtan

1. Impose a fine on the convicted of 300,000 Three Hundred Thousand Riyals.
2. Imprison the convicted for a period of three years.
3. He shall refrain from working in listed companies for seven years. 

Fourth: The Defendant/ Jassim Bin Mohammed Bin Ali Alansari

1. Impose a fine on the convicted of 300,000 Three Hundred Thousand Riyals.
2. He shall Refrain from working in listed companies for five years.

Fifth: The Defendant/ Abdullah Bin Mohammed Bin Saad Alhariqi

1. Impose a fine on the convicted of 300,000 Three Hundred Thousand Riyals.
2. He shall refraining from working in listed companies for five year. 

Sixth: The Defendant/ Zaki bin Mansour Bin Ahmed AbuAlsaud

1. Impose a fine on the convicted of 300,000 Three Hundred Thousand Riyals.
2. He shall refrain from working in listed companies for five years. 
   

Seventh: The Defendant/ Ahmed Bin Nasser Bin Yaqoub Alsuwaidan

1. Impose a fine on the convicted of 300,000 Three Hundred Thousand Riyals.
2. He shall refrain from working in listed companies for five years.

Eighth: The Defendant/ Deloitte authorisation no. (96) issued by SOCPA

1. Impose a fine on the convicted of 300,000 Three Hundred Thousand Riyals.
2. Preventing the convicted from providing any legal accounting for authorised persons or any securities’ issuer for a period of two years, provided that the ban period starts on 01/06/2015G as stipulated in the decision of CRSD no. 1420/ل/د1/2014  for the year of 1436H dated 01/02/1436H corresponding to 23/11/2014G.

Ninth: The Defendant/ Baker Bin Abdullah Abu Alkhair

1. Impose a fine on the convicted of 300,000 Three Hundred Thousand Riyals.
2. Preventing  the convicted from providing any legal accounting for authorised persons, or any securities’ issuer for a period of two years, provided that the ban period starts on 01/06/2015G as stipulated in the decision of CRSD no. 1420/ل/د1/2014   for the year of 1436H dated 01/02/1436H corresponding to 23/11/2014G. 

Tenth: Maintaining the provisional seizure and the travel ban on the first defendant/ Mohammed Bin Hamad Bin Abdulkarim Almojil on which the decision no. 1420/ل/د1/2014  for the year of 1436H dated 01/02/1436H corresponding to 23/11/2014G, and decision no. 1457/ل/د1/2015  for the year of 1436H dated 19/05/1436H corresponding to 10/03/2015G. until the repayment of all amounts under this decision.

Eleventh: Maintaining the travel ban of the second defendant/ Adel Bin Mohammed Bin Hamad Almojil on which the decision no. /ل/د1/2014 1420 for the year of 1436H dated 01/02/1436H corresponding to 23/11/2014G until the repayment of all amounts under this decision.

In this regard, CMA wishes to clarify that the mentioned decision included that the illegal profits under which the defendant Mohammed Bin Hamad Bin Abdulkarim Almojil (ex-chairman of the company) was convicted amount (1,620,000,000) one billion, six hundred and twenty million riyals represent the difference between the value at which company's shares were offered to the public in an IPO and the real value of shares. CMA will take all statutory procedures stated in the Capital Market Law and the State Revenue Law to collect the amount under this decision. CMA also stresses on the right of any person affected by these violations to file a case before CRSD claiming compensation for such damages as per Article (57) on the Capital Market Law, provided that such is proceeded by submitting a claim or a complaint to CMA. 

CMA clarifies to the public that the decision convicts the defendants of the violations committed during the IPO stage; CRSD has not considered the violations occurred after the IPO regarding manipulating the company's financial statements, as such violations will come in a separate case files before the committee. CMA started to take the legal procedures for filing this case against the violators. In due time, CMA will announce to the public the latest developments on the case.

CMA insures its devotion to apply justice, efficiency, and transparency in securities transactions as well as protect investors from illegal acts.